Student Access Loan Program FY 2017 Pennie Strong Vice President Student Aid Services GASFAA Conference June 2, 2016 9/16/2018 2016 GASFAA Conference

Agenda Budget Regulations Application and Selection Process Loan Requirements Repayment Options SURFER Reports Year End Reconciliation 9/16/2018 2016 GASFAA Conference

FY 2016 & FY 2017 SAL Budget FY Appropriated Available From Prior Year Total Budget FY2016 $27,000,000 $1,553,000 $28,553,000 FY2017 $7,000,000 Approximately $34,000,000 9/16/2018 2016 GASFAA Conference

FY 2017 SAL Regulations Selection of applications Priority consideration given to applicants: HOPE and Zell Miller Scholarship recipients New: FY 2016 SAL recipients in good standing First selection is the Priority Group Selection First Come, First Served Clarified Post Baccalaureate coursework other than for a First Professional Degree program is not allowed 9/16/2018 2016 GASFAA Conference

FY 2017 SAL Regulations Revised “Defaulted Loan or Refund Due” section of each regulation to distinguish between the resolution of default status for federal loans and Georgia loans Federal default status may be cleared in five ways: New: satisfactory repayment plan as resolution for a federal defaulted loan Completing an acceptable rehabilitation plan Having the loan repurchased by the original lender and the default status reversed Consolidating the loan out of a default status Receiving an approved Title IV debt settlement, to include a compromised settlement State default status may be cleared: Paid in Full 9/16/2018 2016 GASFAA Conference

SAL Application Process Online Application submitted through website System checks Name, SSN, DOB 2016-2017 FAFSA is completed & GSFC has an ISIR Cannot proceed without a FAFSA on file SAL Borrowers that have reached the aggregate loan limit 9/16/2018 2016 GASFAA Conference

SAL Application Process Applicant selects the postsecondary institution attending System directs to the appropriate application Each application looks very similar to include: New - Entrance Counseling Information to be confirmed it was read Sample Disclosure Application Primary and secondary phone numbers Permission to text Opt out option (of electronic communications) If does not opt out, applicant will receive email communications and link to documents If opt out, applicant will receive paper communications and mailed documents 9/16/2018 2016 GASFAA Conference

SAL Application Online FAFSA Check Select PSI Entrance Counseling Request Amount to Borrow Application Disclosure Statement 9/16/2018 2016 GASFAA Conference

FY 2017 SAL - USG and Private PSIs Loan amounts $8,000 annual maximum $4,000 per term limit $36,000 aggregate limit $500 annual minimum Eligible programs Certificate, associate, baccalaureate (including a second bachelor) or a first professional degree program Must meet satisfactory academic progress and residency requirements Must exhaust other state and federal scholarships, grants and loans May decline federal and institutional work study 9/16/2018 2016 GASFAA Conference

FY 2017 SAL - TCSG Institutions Loan amounts $3,000 annual maximum $1,500 per term limit $12,000 aggregate limit $300 annual minimum Eligible programs Certificate, diploma, and associate degree Must meet satisfactory academic progress and residency requirements Must exhaust all other state and federal scholarships and grants May decline federal loans or federal and institutional work study 9/16/2018 2016 GASFAA Conference

FY 2017 SAL Application and Selection Process Application Cycle remains open based on funds available New: Selections are not done on a given date(s) Selection on First Come, First Served Basis Selection will be preformed daily Basic Steps Student applies and receives an email as receipt of the application Application goes through preliminary eligibility check Application is selected and pushed to SURFER PSI certifies or denies the loan application Student is emailed link to Promissory Note & Self Certification or emailed of denial Student submits the Promissory Note & Self Certification GSFA approves the loan Funds are disbursed to the PSI 9/16/2018 2016 GASFAA Conference

FY 2017 SAL Application and Selection Process Application preliminary eligibility process Default or delinquent status on any loans including previous SALs Delinquent on KIT payments Delinquent or in default on annual interest payments Delinquent or default on repayment excluded from selection consideration, if make payments to be in good standing can be considered in future selection Errors with name, SSN, selective service, default on federal loans per FAFSA information Selection processing overnight Applications with no errors and in good standing are selected and pushed to SURFER overnight Application with errors are processed by staff, if cleared, selected and pushed the SURFER the next night 9/16/2018 2016 GASFAA Conference

FY 2017 SAL Application and Selection Process FY 2017 first three weeks selection for Priority Group HOPE and Zell Miller Scholarship recipients Received HOPE or ZM Scholarship FY 2016 (invoice record) Determined eligible for HOPE or ZM Scholarship based on 2016 high school HOPE record FY 2016 SAL Borrowers in good standing After the first three weeks Remaining applications processed on a first come, first served basis Selection processing preformed overnight 9/16/2018 2016 GASFAA Conference

FY 2017 SAL Selection Process Selected Applications ready for certification are reported to selected institutions in SURFER Applicant file is placed in the SURFER inboxes Applicant list is placed in the SAL reports section of SURFER New: Certify or Deny the loan application within 40 days or it is Administratively Canceled The 40 day deadline will be posted next to the applicant’s name Loan start and end date is prefilled Loan Period – July 15, 2016 to June 22, 2017 9/16/2018 2016 GASFAA Conference

FY 2017 SAL Selection Process Applicants have 14 days from receipt of promissory note email or mail to submit the promissory note packet GSFA will administratively canceled an application After 40 days if the application is not certified or denied by the PSI After 14 days if the applicant has not submitted the promissory note packet 9/16/2018 2016 GASFAA Conference

Loan Requirements Interest rate: 1% fixed for the life of the loan (default interest rate 5%) Origination fee: 5% of the total loan amount up to $50.00 Origination fee deducted from the first disbursement and nonrefundable except in cases of cancellations of the full loan If partial refund is made, the origination fee remains $50.00 Postsecondary institutions must give at least a five business day notice to SAL Specialists at salsfap@gsfc.org for any disbursement adjustments or requests for reissue 9/16/2018 2016 GASFAA Conference

Loan Requirements Keep In Touch (KIT) payments KIT payment of $10 per month while student is enrolled at least half time (6 or more hours) and in grace period First KIT payment is due approximately 60 days after first disbursement date, email notification to borrower Students in Repayment must make a minimum $50 monthly payment Methods to submit payments: Online via www.pathways2gsfa.org Preauthorized draft payment Online personal banking account By phone or mail 9/16/2018 2016 GASFAA Conference

Repayment Options Service Cancellation - Previous years of SAL and FY 2017 at USG and Private Service credit for STEM teachers in the Georgia Public School System Based on each academic year worked Service cancellation may equal up to one year of service credit Not to exceed the original principal amount Must request service cancellation within 12 months of completing the service time Request form is available on website 9/16/2018 2016 GASFAA Conference

Repayment Options Service Cancellation – Previous years and FY 2017 at USG and Private Service credit for full time Public Service employees in Georgia Must be a full-time employee at least 275 days during the state fiscal year Not to exceed the original principal amount Request within 12 months of completing the qualifying term of service Service cancellation FY 2016 and 2017 may equal up to one year of service credit Service cancellation prior to FY 2016 may equal up to $750 Request form is available on website 9/16/2018 2016 GASFAA Conference

Repayment Options 2013 and 2014 SAL borrowers - Graduate On Time interest rate reduction still available 1% fixed interest rate if graduate within the designed length of program 6% fixed interest rate if graduate within one year beyond the designed length of program 8% fixed interest rate if graduate beyond one year (or a non-graduate) after the designed length of program Request form with official transcript to be submitted within 6 months of graduation Request form is available on website 9/16/2018 2016 GASFAA Conference

Repayment Options Loan discharge – FY 2015 and after at TCSG institutions Graduate from the program of study for which SAL-TCSG (FY 2016) and SALT (FY 2015) was received with a minimum cumulative 3.5 or higher GPA Request form with official transcript to be submitted within 6 months of graduation Request form is available on website 9/16/2018 2016 GASFAA Conference

SAL Communications SAL Salprogram@gsfc.org student/borrower email Emails continue to be main communication unless student opts out After 60 days late on any payment, letter mailed SAL – TCSG Salt@gsfc.org student/borrower email Emails continue to be main communication unless student opts out After 60 days late on any payment, letter mailed salsfap@gsfc.org Financial Aid Professionals’ email to go directly to all the Origination & Disbursement SAL Specialists 9/16/2018 2016 GASFAA Conference

SAL Program Items Things to Know Student cannot request a loan amount change Cannot add on (summer) to an approved loan If the FAO needs a change to the certified loan, the FAO must contact GSFC, not the student Approval on a case by case basis and funds available Total loan amount cannot be changed on an approved loan Promissory Note and Disclosure Documents have been received and loan is processed for disbursement Disbursement dates set by the FAO First disbursement date will be adjusted if applicant submits required Promissory Note and Disclosure Documents late, based on receipt and processing of documents and the required 3 day option to change mind FAO can return a full disbursement and request reissue for a later term in same year by sending an email request 9/16/2018 2016 GASFAA Conference

SAL Default Considerations Reviewing overall and institutional cohort default rates Plan to provide institutional rates during FY 2017 Options being considered Higher Cohort Default Rates could result in ineligibility to participate in the program Require a default management plan, financial literacy or entrance/exit counseling component 9/16/2018 2016 GASFAA Conference

SURFER SAL Reports Applicant status report List each applicant selected for your school Fields: Certified or declined date, Promissory Note received and approved dates Scheduled disbursements report Fields: Last name, first name, SSN, certified date, guaranty date, disbursement date and disbursement amount Disbursement/reconcile report Fields: Disbursement date and number, check number, gross and net amounts Refunds report Includes refunded and canceled disbursements 9/16/2018 2016 GASFAA Conference

SURFER SAL Reports Delinquency and Default SAL borrowers reports SAL Default Report SAL Delinquency Report SAL KIT Delinquent Report payments (began FY 2015) Reports are based on statuses as of approximately the 15th of each month Borrowers should check status of previous loans: pathways2gsfa.org Loan Servicing: 800-414-2692 Mailed a loan packet while in grace period Mailed a notice when 60 days late 9/16/2018 2016 GASFAA Conference

SURFER - SAL Year-End Reconciliation Screen Year-End Reconciliation due July 15 Total Disbursements Amount Refunded for the current year 9/16/2018 2016 GASFAA Conference

Email for students/borrowers Email for Financial Aid Professionals Contact Us Email for students/borrowers SAL: salprogram@gsfc.org SAL-Technical: salt@gsfc.org Email for Financial Aid Professionals salsfap@gsfc.org Gary Mann garym@gsfc.org 770-724-9039 Pennie Strong pennies@gsfc.org 770-924-9014 9/16/2018 2016 GASFAA Conference